Nigeria’s first-ever domestic bond denominated in foreign currency has successfully garnered $900 million in subscriptions, marking a notable achievement in the country’s financial market.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, shared the outcome of this significant bond issuance on Tuesday, September 10. Edun noted that the oversubscription is a strong testament to investor confidence in the country’s economic stability and future growth. He underscored that the successful introduction of the domestic dollar bond is a crucial part of the government’s plan to foster economic growth and boost financial inclusion.
He further highlighted that this success reflects the government’s commitment to diversifying its funding sources amid ongoing economic challenges.
“The issuance of this inaugural domestic FGN US Dollar Bond highlights the continued faith investors have in Nigeria’s economy,” Edun said.
The bond drew interest from a wide range of investors, including Nigerians from both within the country and abroad, alongside institutional investors. The funds raised will be allocated to vital economic sectors, as authorized by President Bola Tinubu.
The $500 million domestic FGN US Dollar Bond, with a five-year maturity and a 9.75 percent coupon rate, constitutes the initial tranche of a broader $2 billion bond program registered with the Securities and Exchange Commission. This bond’s structure allows the government to accommodate oversubscriptions up to the total $2 billion limit.
Patience Oniha, the Director-General of the Debt Management Office, celebrated the bond’s success as a pivotal moment for Nigeria’s economic development. She pointed out that the $900 million raised from a diverse array of investors showcases the growing maturity of Nigeria’s domestic fixed-income market. Oniha praised the concerted efforts of all parties involved in the issuance, crediting their collaboration and expertise for the success of the transaction.
